Baby Boomers - The Future Of The Stock Market

You have no doubt heard of the “Baby Boomers”, those individuals born between 1943 and 1963. Following World War II, Australia’s population grew at record levels. Australia was not alone in this phenomenon. The United States, New Zealand and Canada all experienced Baby Booms at a similar time.
The Baby Boomers are an important phenomenon to understand. They have had dramatic effects on society and will substantially impact the way the stock market performs over the next 20 years. For this reason, it is important to understand some of the background on this interesting group of people.
As mentioned, the Baby Boom was experienced in various countries around the world. Part of the reason for the “Boom” was that these countries were immigrant receivers and immigrants tend to be in their 20’s, the prime childbearing years. At its peak in 1957, the US boom hit 3.7 children per family. Canada hit its peak in 1959 with Canadian women averaging 4 offspring each; that was over 479,000 new births that year alone! Australia’s boom was not quite as big as the Canadian or US booms; however, we still have a disproportionate number of people who are today in their 40’s and 50’s. Following the Baby Boom, we had a Baby Bust. Far fewer children were born during the late sixties, leaving Australia with an asymmetrical population graph.
The Baby Bust group, born between 1964 and 1976 are a much smaller group than their predecessors and are commonly referred to as Generation X.
Baby Boomers are a very significant and important group. It is not that, individually, they are any different than any other group who preceded them, it’s just that there are so many of them. Due to their large numbers, Baby Boomers have had a significant impact on our society, making substantial changes as they grew. They have changed the economy, driven housing and other markets and transformed social attitudes and lifestyles.
In Australia and North America today, the fastest growing industries, apart from technology, are financial management, leisure activities and health care. It is very easy to see why. Boomers have been working all their adult lives, usually for someone else. They have raised their children and are now focusing on their retirement. They have had a magnificent time. They have not endured wars, or a depression like their parents and grandparents. They have enjoyed fantastic luxuries such as cars, world holidays and computers. They have been at the forefront of the age of discovery.
Unfortunately, the majority have not prepared themselves financially for their retirements, believing instead that like their parents, they would enjoy a comfortable pension from their employers and/or government. The stark realities are now coming to light. Everybody, especially the Boomers, must take responsibility for their financial futures. Our government will simply not be in a position to provide adequate pension incomes for a growing number of retirees. Today, for every person who is retired, there are four people working, providing income to the government. By 2025, there will be only 2 people working for every retiree. What’s more, the Boomers, as they start to retire, will live longer than any group before them, well into their 70’s and 80’s on average. As a result, it is up to each of us as individuals to take responsibility of our own personal financial planning.
The Australian government has made substantial improvements and preparations for the growing populations. They have introduced a compulsory superannuation scheme which all employers and employees must participate in and which is gradually rising in required contributions, but it will be too little, too late. The key to investment growth is time, a luxury many Boomers no longer possess.
Consider this fact, that at a return of 8% per annum, net of tax, an investment of $30,000 would require over 15 years to triple in value, not even considering the effects of inflation. Most investment strategies commonly promoted to the public boast returns of 4% to 10% per annum. We often see managed funds, superannuation schemes, bank term deposits and property investments offering such results. Many people consider these returns appropriate and even good! Unfortunately, many members of the public require a much greater return on their investments to adequately improve their financial positions before they retire (if they can ever afford to!).
In future issues we will explore ways of generating high returns and how to self manage your own super.

Daniel Kertcher is a licensed stock market educator. Daniel has trained many people from North America, Australia and Europe in various trading systems. Join his trading mail list http://www.platinumpursuits.com and read more about him at his personal website http://www.danielkertcher.com
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How to Hit it Big in the Stock Market

Everyone wants the chance to strike it big, but few actually know how. The stock market has always been where many hopefuls go to try to bring their dreams to reality. This is not always easy but with some tips it can make starting your journey into the stock market a lot easier.

1. Check with your company and see if you are part of a stock option- Many people may be involved in this and not even know it. This is when employees are rewarded for helping the business grow with complementary company stocks. This is a great way for many people to start off. With stock options you can either invest in the company, hoping that it will grow, or you can bet that the company is going to lose money and do poorly. Either way their is risk but if you pick right there may be great reward.

2. Try investing in penny stocks- Penny stocks are companies that have either just started out, or they have fallen from a much higher price. The risk may be high if you put a lot of money into the stock, but the reward will be enormous if the price goes up, even a couple cents. Don't believe the people that claim a certain penny stock is going to increase by thousands of percent and you should buy now. Most of those are lies, you should do your own research, and buy stocks that you are comfortable with.

3. Get a bonds guide- Bonds guides give you a look inside the world of bonds and tell you when you should get involved. Bonds are more of a long term investment for people looking for future financial stability. These bonds can pay off really well for you.

Now there are three easy tips for anyone hoping to get into the stock market. If you would like more information about stock trading go Click here

All about stock options

So you are interested in being independently wealthy but you don’t know how you are going to do it. Are there really any good choices?
Well I cannot say how you will do it but options may work for you. Ask anyone who has achieved the status of being independently wealthy and they are likely to tell you the key to building real wealth in the world isn’t with working hard and saving up, but with playing the stock market. One popular way people can delve into the world of stock trading is with trading stock options.
More and more employers give stock options as a reward to employees for helping to grow the company from the ground up. Some companies even give more stock options instead of actual salary because they don’t have much cash on hand. By investing in stock options, you become a part owner in that company and you have a vested interest on how the company performs overall. But you need to be aware that trading stock options can be risky, just like any other form of investing. Don’t ever play with money you don’t have, and don’t ever invest funds that you can’t afford to lose. Remember, even professional stock brokers sometimes pick the wrong way when it comes to how a stock might perform.
A stock option is essentially a promise from a company that you can invest in that particular company. With a stock option, you have the flexibility to "bet" on either the company making money and growing or losing money and doing poorly. But there is even more to trading stock options than that. You have several other options available to you that carry less risk, but also carry less possible reward. Stock options are a favorite of many casual and part time traders because they only carry as much risk as you want to take. You can put all of your options on one bet and make (or lose) everything, or you can be more careful and see what happens. Stock options could be a great way to start a healthy and wealthy career in investing.
David Gilmore - Owner / Operatorhttp://thestockoptions411.com
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